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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-08747

Dividend and Income Fund

(Exact name of registrant as specified in charter)

3814 Route 44, Millbrook, NY 12545

(Address of principal executive offices) (Zip code)

Russell Kamerman, Esq.

3814 Route 44

Millbrook, NY 12545

(Name and address of agent for service)

Registrant's telephone number, including area code: 1-212-785-0900

Date of fiscal year end: 12/31

Date of reporting period: 1/1/21 – 6/30/21

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. sec. 3507.

Item 1. Report to Stockholders.

TO OUR SHAREHOLDERS

June 30, 2021

Dear Fellow Shareholders:

It is a pleasure to welcome each of our new shareholders to Dividend and Income Fund and to submit this 2021 Semi-Annual Report. The Fund seeks to achieve its primary investment objective of high current income and secondary objective of capital appreciation by investing, under normal circumstances, at least 50% of its total assets in income generating equity securities. These securities may include dividend paying common stocks, convertible securities, preferred stocks, securities of registered investment companies, exchange traded funds organized as investment companies or otherwise, real estate investment trusts, depositary receipts, and other equity related securities. Of course, there can be no assurance that the Fund will achieve its objectives.

5 Stars Awarded by Morningstar

We are very pleased to announce that Dividend and Income Fund has received the coveted 5 Star Morningstar Rating overall for the period as of June 30, 2021. The Morningstar Ratings are subject to change without notice.¹

Economic and Market Report

According to the minutes of its June 2021 meeting, the Federal Open Market Committee (“FOMC”) of the Federal Reserve Bank acknowledged lower employment growth and higher inflation readings than had been expected, although it also cited median forecasts for 2022 and 2023 suggesting inflationary pressures may subside. At the meeting, FOMC staff indicated that data suggested that U.S. real gross domestic product (GDP) was expanding in the second quarter at a pace that was faster than in the first quarter of the year and labor market conditions had improved, while consumer price inflation had picked up notably. Housing demand was seen as robust and manufacturing output as expanding. Equipment and intangibles investment—particularly in high-tech categories—was described as “increasing solidly” in the second quarter. In financial markets, the FOMC noted that equities rose slightly, the broad dollar weakened, and credit spreads were little changed at historically tight levels.

The FOMC staff projected real GDP growth for the United States to increase substantially this year, with a correspondingly rapid

decline in the unemployment rate. Yet, the staff viewed uncertainty surrounding the economic outlook as “elevated.” Accordingly, our investing outlook continues to be cautious, and we are seeking to be prepared for periods of heightened volatility and price weakness.

Investment Strategy and Returns

In view of these economic and market developments, the Fund’s strategy in the first half of 2021 was to seek companies with strong operations showing superior returns on equity and assets, generating free cash flow, with reasonable valuations. Generally, the Fund purchased and held income generating equity securities of profitable, growing, and conservatively valued companies across a broad array of industries in seeking to achieve its primary investment objective of high current income and secondary objective of capital appreciation and sold investments that appeared to have appreciated to levels reflecting full or over-valuation.

In the six months ended June 30, 2021, the Fund’s net investment income, net realized gain on investments, and unrealized appreciation on investments were, respectively, $27,026, $13,428,809, and $33,331,256, which contributed materially to the Fund’s net asset value return of 24.27%, including the reinvestment of dividends, as did dilution occurring under the Fund’s Dividend Reinvestment Plan. Profitable sales in the period were made of, among others, shares of T. Rowe Price Group, Inc. in the security and commodity brokers, dealers, exchanges, and services industry. Losses were taken on, among others, Warrior Met Coal, Inc. in the coal mining industry. The Fund’s holdings of Check Point Software Technologies Ltd. in the business services industry contributed to unrealized depreciation during the period. At the same time, the Fund benefited from unrealized appreciation from its investment in Williams-Sonoma, Inc. in the home furniture, furnishings, and equipment stores industry.

The Fund’s market return for first half of 2021, also including the reinvestment of dividends, was 36.55%. Generally, the Fund’s total return on a market value basis will be higher than total return on a net asset value basis in periods when there is a decrease in the discount or an increase in the premium of the market value to the

¹ As of June 30, 2021, the Fund received a 5 star Morningstar Rating for the 5 and 10 year periods, and overall, and a 3 star rating for the 3 year period. The top 10% of funds in each fund category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. Although the Fund believes the data gathered from this third party source is reliable, it does not review such information and cannot warrant it to be accurate, complete, or timely. Past performance is no guarantee of future results. Investors should carefully consider the Fund’s investment objectives, risks, charges and expenses before investing. The Fund’s investment policies, management fees, and other matters of interest to prospective investors may be found in its filings with the Securities Exchange Commission, including its annual and semi-annual reports. To obtain a copy of the reports, please call us toll free at 855-411-6432 or download them at https://dividendandincomefund.com/literature/. Please read the reports carefully before investing. The Morningstar Rating is provided by Morningstar, Inc. The Morningstar Rating for funds, or “star rating”, is calculated for funds with at least a three year history. (Exchange traded funds and open end mutual funds are considered a single population for comparative purposes.) It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a fund’s monthly excess performance (excluding the effect of sales charges, if any), placing more emphasis on downward variations and rewarding consistent performance. Neither the Fund nor its investment manager provided any compensation directly or indirectly in connection with obtaining or using this third party rating.

1 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

TO OUR SHAREHOLDERS

June 30, 2021

net asset value from the beginning to the end of such periods. For comparison, in the same period, the S&P 500 Index total return was 15.25%. This index is unmanaged and does not reflect fees and expenses, nor is it available for direct investment. At June 30, 2021, the Fund’s portfolio included securities of over 55 different issuers, with the top ten securities amounting to approximately 32% of net assets. At that time, the Fund’s investments totaled approximately $244 million (including cash of $6 million) of net assets of approximately $244 million, with no leverage. As the Fund pursues its primary investment objective of seeking high current income, with capital appreciation as a secondary objective, these holdings and allocations are subject to change at any time.

Quarterly Distributions

As of June 1, 2021, the Fund declared a distribution of $0.25, its second quarterly distribution of the 2021 year, bringing the 12 month total to $1.00 per share. The quarterly distribution reflects the Fund’s current distribution policy to provide shareholders with a relatively stable cash flow per share. This policy did not have a material effect on the Fund’s investment strategy and did not result in returns of capital that reduced the Fund’s per share net asset value in the first half of 2021. There is no guarantee that the Fund’s current distribution policy will reduce or eliminate the Fund’s market price discount to its net asset value per share and the Fund’s trustees have no fiduciary duty to take action, or to consider taking any action, to narrow any such discount. The distribution policy may be changed or discontinued without notice.

As of June 1, 2021, and based on the Fund’s results and estimates for the current quarter, the distribution of $0.25 per share would include approximately 0%, 100%, and 0% from net investment income, capital gains, and return of capital, respectively. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution. The amounts and sources of distributions reported are only estimates based on book basis earnings, are likely to change over time, and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the entirety of its fiscal year and may be subject to changes based on tax regulations. The amounts and sources of distributions year-to-date may be subject to additional adjustments. The Fund intends to send shareholders a Form 1099- DIV for the calendar year that will instruct how to report these distributions for federal income tax purposes.

Distributions may be paid in part or in full from net investment income, realized capital gains, return of capital, or a combination thereof. To the extent that the Fund has estimated that it has distributed more than its income and net realized capital gains, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” Additionally, a return of capital is not taxable; rather it reduces a shareholder’s tax basis in his or her shares of the Fund, thereby increasing the shareholder’s potential gain or reducing its potential loss on the subsequent sale of those shares.

For those shareholders who are currently receiving the Fund’s quarterly distributions in cash but are interested in adding to their account through the Fund’s Dividend Reinvestment Plan, we encourage you to review the plan set forth later in this document and contact the Fund’s transfer agent, who will be pleased to assist you with no obligation on your part.

Fund Website

The Fund’s website, www.DividendandIncomeFund.com, provides investors with investment information, news, and other material about the Fund. The website also has links to SEC filings, performance, tax, and daily net asset value reporting. You are invited to use this resource to learn more about the Fund.

Management’s Long Term Focus

We thank you for investing in the Fund and share your enthusiasm for its potential, as evidenced by the fact that affiliates of the Investment Manager own approximately 10.1% of the Fund’s outstanding shares pursuant to the Fund’s governing documents that permit ownership of more than 4.99% of the Fund’s outstanding shares only with the prior approval of the Fund’s Board of Trustees. We look forward to serving your investment needs over the years ahead.

Sincerely,

LOGO

Thomas B. Winmill

President and Portfolio Manager

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 2

PORTFOLIO ANALYSIS

June 30, 2021


TOP TEN		June 30, 2021
SECURITY HOLDINGS

1 Credit Acceptance Corporation (4%)

2 Medifast, Inc. (4%)

3 AutoZone, Inc. (4%)

4 Skyworks Solutions, Inc. (4%)

5 Tractor Supply Company (3%)

6 Williams-Sonoma, Inc. (3%)

7 Essent Group Ltd. (3%)

8 Tyson Foods, Inc. (3%)

9 Rio Tinto plc (3%)

10 eBay Inc. (2%)


TOP TEN		June 30, 2021
INDUSTRIES

1 Business Services (11%)

2 Non-Depository Credit Institutions (10%)

3 Insurance Carriers (10%)

4 Electronic and Other Electrical Equipment and Components, except Computer Equipment (8%)

5 Chemical and Allied Products (7%)

6 Food and Kindred Products (7%)

7 Building Materials, Hardware, Garden Supply, and Mobile Home Dealers (5%)

8 Automotive Dealers and Gasoline Service Stations (4%)

9 Security and Commodity Brokers, Dealers, Exchanges, and Services (4%)

10 Home Furniture, Furnishings, and Equipment Stores (3%)

Top ten security holdings and industries are shown for informational purposes only as an approximate percentage of net assets and are subject to change. Top ten industries uses Standard Industrial Classification codes. The above portfolio information should not be considered as a recommendation to purchase or sell a particular security and there is no assurance that any securities will remain in or out of the Fund.

LOGO

3 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2021 (Unaudited)

Financial Statements


Common Stocks (96.32%)	Shares		Value

Automotive Dealers and Gasoline Service Stations (3.70%)
AutoZone, Inc. ^(a)		6,050	$	9,027,931

Automotive Repair, Services, and Parking (2.41%)
AMERCO		10,000		5,894,000

Building Materials, Hardware, Garden Supply, and Mobile Home Dealers (5.20%)
The Home Depot, Inc.		15,000		4,783,350
Tractor Supply Company		42,500		7,907,550

				12,690,900

Business Services (10.52%)
Accenture plc		6,100		1,798,219
Alphabet Inc. Class A ^(a)		727		1,775,181
BGSF Inc.		40,522		500,042
Check Point Software Technologies Ltd. ^(a)		29,000		3,367,770
eBay Inc.		85,000		5,967,850
Kforce Inc.		50,000		3,146,500
Open Text Corporation		66,000		3,352,800
Robert Half International Inc.		65,000		5,783,050

				25,691,412

Chemical and Allied Products (7.37%)
Amgen Inc.		16,000		3,900,000
Celanese Corporation		22,500		3,411,000
LyondellBasell Industries N.V. Class A		35,000		3,600,450
Roche Holding Ltd. ADR		80,000		3,759,200
Westlake Chemical Corporation		37,000		3,333,330

				18,003,980

Coal Mining (1.87%)
Warrior Met Coal, Inc.		264,978		4,557,622

Communications (2.33%)
Comcast Corporation		100,000		5,702,000

Depository Institutions (1.76%)
Wells Fargo & Company		95,000		4,302,550

Educational Services (1.77%)
Grand Canyon Education, Inc. ^(a)		48,000		4,318,560

Electronic and Other Electrical Equipment and Components, except Computer Equipment (7.63%)
Intel Corporation		106,000		5,950,840
Methode Electronics, Inc.		82,500		4,059,825
Skyworks Solutions, Inc.		45,000		8,628,750

				18,639,415


	Shares		Value

Food and Kindred Products (6.61%)
Medifast, Inc.		35,000	$	9,904,300
Tyson Foods, Inc.		84,500		6,232,720

				16,137,020

General Merchandise Stores (1.82%)
Dollar General Corporation		20,600		4,457,634

Heavy Construction other than Building Construction Contractors (1.69%)
MasTec, Inc. ^(a)		39,000		4,137,900

Home Furniture, Furnishings, and Equipment Stores (3.14%)
Williams-Sonoma, Inc.		48,000		7,663,200

Industrial and Commercial Machinery and Computer Equipment (0.98%)
Arista Networks, Inc. ^(a)		6,600		2,391,246

Insurance Carriers (9.75%)
Anthem, Inc.		9,600		3,665,280
Essent Group Ltd.		150,000		6,742,500
Humana Inc.		10,000		4,427,200
Prudential Financial, Inc.		35,000		3,586,450
UnitedHealth Group Incorporated		13,500		5,405,940

				23,827,370

Metal Mining (2.52%)
Rio Tinto plc		73,500		6,165,915

Non-Depository Credit Institutions (9.93%)
Credit Acceptance Corporation ^(a)		23,000		10,444,530
Discover Financial Services		50,000		5,914,500
Enova International, Inc. ^(a)		96,000		3,284,160
OneMain Holdings, Inc.		77,000		4,613,070

				24,256,260

Petroleum Refining and Related Industries (1.59%)
Valvoline Inc.		120,000		3,895,200

Primary Metal Industries (1.90%)
Steel Dynamics, Inc.		78,000		4,648,800

Security and Commodity Brokers, Dealers, Exchanges, and Services (3.52%)
Ameriprise Financial, Inc.		18,000		4,479,840
BlackRock, Inc.		4,700		4,112,359

				8,592,199

See notes to financial statements.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 4

SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2021 (Unaudited)

Financial Statements


Common Stocks (continued)	Shares		Value

Tobacco Products (1.54%)
Imperial Brands PLC		171,000	$	3,752,595

Transportation by Air (2.56%)
Alaska Air Group, Inc. ^(a)		65,000		3,920,150
Southwest Airlines Co. ^(a)		44,000		2,335,960

				6,256,110

Transportation Equipment (3.05%)
Huntington Ingalls Industries, Inc.		7,000		1,475,250
LCI Industries		22,500		2,956,950
Lockheed Martin Corporation		8,000		3,026,800

				7,459,000

Wholesale Trade - Nondurable Goods (1.16%)
Nu Skin Enterprises, Inc.		50,000		2,832,500


Total common stocks (Cost $154,098,366)				235,301,319


Corporate Bonds and Notes (0.12%)	Principal Amount		Value

Electric Services (0.12%)
Elwood Energy LLC, 8.159%, 7/5/26 (Cost $266,349)		263,965		285,099

Reorganization Interests (0.00%)	Units		Value

Penson Technologies LLC Units ^(a) (b) (Cost $ 0)		813,527		0


Master Limited Partnerships (0.39%)	Units		Value

Electric, Gas, and Sanitary Services (0.39%)
Enterprise Products Partners L.P. Units (Cost $374,214)		40,000	$	965,200

Preferred Stocks (0.50%)	Shares		Value

Holding and other Investment Offices (0.50%)
Ashford Hospitality Trust, Inc., 7.50 % Series H		15,000		401,700
Cedar Realty Trust, Inc., 6.50% Series C		15,000		377,400
Pennsylvania Real Estate Investment Trust, 6.875% Series D		35,000		404,250
Washington Prime Group Inc., 7.50% Series H		9,000		27,720
Washington Prime Group Inc., 6.875% Series I		5,000		16,250


Total preferred stocks (Cost $1,684,450)				1,227,320


Total investments (Cost $156,423,379) (97.33%)				237,778,938
Cash and other assets in excess of liabilities (2.67%)				6,511,121


Net assets (100.00%)			$	244,290,059

(a)

Non-income producing.

(b)

Illiquid and/or restricted security that has been fair valued.

See notes to financial statements.

5 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

STATEMENT OF ASSETS AND LIABILITIES

(Unaudited)

Financial Statements


	June 30, 2021

Assets
Investments, at value (cost: $156,423,379)	$	237,778,938
Cash		6,763,908
Receivables:
Dividends		131,616
Foreign withholding tax reclaims		20,835
Interest		10,724
Prepaid expenses and other assets		274,289


Total assets		244,980,310


Liabilities
Payables:
Accrued expenses		450,350
Investment management		191,163
Administrative services		28,577
Trustees		20,161


Total liabilities		690,251


Net Assets	$	244,290,059


Net Asset Value Per Share
(applicable to 12,620,075 shares issued and outstanding)	$	19.36


Net Assets Consist of
Paid in capital	$	154,891,792
Distributable earnings		89,398,267


	$	244,290,059


See notes to financial statements.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 6

STATEMENT OF OPERATIONS

(Unaudited)

Financial Statements


	Six Months Ended June 30, 2021
Investment Income
Dividends (net of $20,199 foreign tax withholding)	$	2,177,188
Interest		11,108


Total investment income		2,188,296


Expenses
Investment management		1,105,038
Legal		614,650
Administrative services		129,525
Interest and fees on credit agreement		85,525
Trustees		67,183
Bookkeeping and pricing		52,810
Transfer agent		26,689
Insurance		23,168
Auditing		21,720
Custodian		14,205
Shareholder communications		10,136
Registration		5,554
Other		5,067


Total expenses		2,161,270


Net investment income		27,026


Realized and Unrealized Gain
Net realized gain on investments		13,428,809
Unrealized appreciation on investments		33,331,256


Net realized and unrealized gain		46,760,065


Net increase in net assets resulting from operations	$	46,787,091


See notes to financial statements.

7 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

Financial Statements


	Six Months Ended June 30, 2021			Year Ended December 31, 2020

Operations
Net investment income	$	27,026		$	512,884
Net realized gain on investments		13,428,809			5,494,674
Unrealized appreciation investments		33,331,256			6,040,940



Net increase in net assets resulting from operations		46,787,091			12,048,498


Distribution to Shareholders
Distributable earnings		(6,289,725	)		(6,787,214	)
Return of capital		-			(5,701,511	)


Total distributions		(6,289,725	)		(12,488,725	)


Capital Share Transactions
Reinvestment of distributions to shareholders		746,921			1,138,790


Increase in net assets from capital share transactions		746,921			1,138,790


Total change in net assets		41,244,287			698,563

Net Assets
Beginning of period		203,045,772			202,347,209


End of period	$	244,290,059		$	203,045,772

See notes to financial statements.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 8

STATEMENTS OF CASH FLOWS

(Unaudited)

Financial Statements


	Six Months Ended June 30, 2021

Cash Flows from Operating Activities

Net increase in net assets resulting from operations		$	46,787,091

Adjustments to reconcile increase in net assets resulting from operations to net cash provided by (used in) operating activities:

Unrealized appreciation on investments			(33,331,256)

Net realized gain on sales of investments			(13,428,809)

Purchase of long term investments			(37,755,589)

Proceeds from sales of long term investments			59,558,663

Amortization of premium on investments			195

Increase in dividends receivable			(8,798)

Increase in foreign tax reclaims receivable			(20,835)

Decrease in interest receivable			2,342

Increase in prepaid expenses and other assets			(207,733)

Decrease in payable for securities purchased			(625,616)

Increase in accrued expenses			328,321

Increase in investment management fee payable			20,565

Increase in administrative services payable			9,688
Increase in trustee expenses payable			16,333

Net cash provided by operating activities			21,344,562

Cash Flows from Financing Activities

Credit agreement repayment, net			(9,401,500)

Cash distributions paid			(5,542,804)

Net cash used in financing activities			(14,944,304)

Net change in cash			6,400,258

Cash

Beginning of period			363,650

End of period		$	6,763,908

Supplemental disclosure of cash flow information:

Cash paid for interest on credit agreement		$	18,561

Non-cash financing activities not included herein consisted of:

Reinvestment of dividend distributions		$	746,921

See notes to financial statements.

9 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

NOTES TO FINANCIAL STATEMENTS

June 30, 2021 (Unaudited)

Financial Statements

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Dividend and Income Fund (the “Fund”), a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “Company Act”), is a diversified, closed end management investment company whose shares are quoted over the counter under the stock symbol DNIF. The Fund’s primary investment objective is to seek high current income. Capital appreciation is a secondary objective. The Fund retains Bexil Advisers LLC as its investment manager (the “Investment Manager”).

As an investment company, the Fund follows the accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standard Codification Topic 946 “Financial Services –Investment Companies.” The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Valuation of Investments – Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is in the United States are usually valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are usually valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price on the local exchange is unavailable, the last evaluated quote or closing bid price normally is used. In the event of an unexpected closing of the primary market or exchange, a security may continue to trade on one or more other markets, and the price as reflected on those other trading venues may be more reflective of the security’s value than an earlier price from the primary market or exchange. Accordingly, the Fund may seek to use these additional sources of pricing data or information when prices from the primary market or exchange are unavailable, or are earlier and less representative of current market value. Certain debt securities may be priced through pricing services that may utilize a matrix pricing system which takes into consideration factors such as yields, prices, maturities, call features, and ratings on comparable securities or according to prices quoted by a securities dealer that offers pricing

services. Open end investment companies are valued at their net asset value (“NAV”). Foreign securities markets may be open on days when the U.S. markets are closed. For this reason, the value of any foreign securities owned by the Fund could change on a day when shareholders cannot buy or sell shares of the Fund. Although the Fund’s Board of Trustees (the “Board”) may choose to determine fair value in good faith for any or all fund investments by carrying out the required functions itself, the Board currently has chosen to designate the performance of fair value determinations to a valuation designee, the Investment Manager, subject to the Board’s oversight, with respect to securities for which market quotations are not readily available or reliable and other assets, called “fair value pricing.” Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available and reliable market quotation for the securities existed. These differences in valuation could be material. A security’s valuation may differ depending on the method used for determining value. The use of fair value pricing may cause the NAV of its shares to differ from the NAV that would be calculated using market prices. A fair value price is an estimate and there is no assurance that such price will be at or close to the price at which a security is next quoted or traded.

Cash – Cash may include deposits allocated among banks insured by the Federal Deposit Insurance Corporation (“FDIC”) in amounts up to the insurance coverage maximum amount of $250,000. Cash may also include uninvested cash balances held by the Fund’s custodian.

Foreign Currency Translation – Securities denominated in foreign currencies are translated into U.S. dollars at prevailing exchange rates. Realized gain or loss on sales of such investments in local currency terms is reported separately from gain or loss attributable to a change in foreign exchange rates for those investments.

Investments in Other Investment Companies – The Fund may invest in shares of other investment companies such as closed end funds, exchange traded funds, and mutual funds (each, an “Acquired Fund”) in accordance with the Company Act and related rules. Shareholders in the Fund bear the pro rata portion of the fees and expenses of an Acquired Fund in addition to the Fund’s expenses. Expenses incurred by the Fund that are disclosed in the Statement of Operations do not include fees and expenses incurred by an Acquired Fund. The fees and expenses of an Acquired Fund are reflected in such Acquired Fund’s total return.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 10

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Financial Statements

Option Transactions – The Fund may write (i.e., sell) covered call options on securities or on indexes to attempt to enhance returns through price changes of the option, increase income, hedge to reduce overall portfolio risk, and hedge to reduce individual security risk. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as the writer of an option, bears the market risk of an unfavorable change in the price of the option. Writing option contracts results in off-balance sheet risk as the Fund’s ultimate obligation to satisfy terms of the contract may exceed the amount recognized in the statement of assets and liabilities.

Investments in Real Estate Investment Trusts (“REITs”) – Dividend income is recorded based on the income included in distributions received from each REIT using published reclassifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are determined by each REIT only after its fiscal year end, and may differ from the estimated amounts.

Short Sales – The Fund may sell a security short it does not own in anticipation of a decline in the market value of the security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker/dealer through which it made the short sale. The Fund is liable for any dividends or interest paid on securities sold short. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, normally is recognized upon the termination of the short sale. Securities sold short result in off balance sheet risk as the Fund’s ultimate obligation to satisfy the terms of a sale of securities sold short may exceed the amount recognized in the Statement of Assets and Liabilities.

Investment Transactions – Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Realized gains or losses are determined by specifically identifying the cost basis of the investment sold.

Investment Income – Dividend income is recorded on the ex-dividend date or, in the case of certain foreign securities and private company securities, as soon as practicable after the Fund is notified. Interest income is recorded on the accrual basis. Amortization of premium and accretion of discount on corporate bonds and notes are included in interest income. Taxes withheld on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

Expenses – Expenses deemed to have been incurred solely by the Fund are normally charged to the Fund in the entirety. Expenses deemed to have been incurred jointly by the Fund and one or more of the other investment companies for which the Investment Manager or its affiliates serve as investment manager, or other related entities, are generally allocated based on the most practicable method deemed equitable at the time the expense is incurred, including, without limitation, on the basis of relative assets under management.

Distributions to Shareholders – Distributions to shareholders are determined in accordance with the Fund’s distribution policies and income tax regulations and are recorded on the ex-dividend date.

Income Taxes – No provision has been made for U.S. income taxes because the Fund’s current intention is to continue to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended (the “IRC”), and to distribute to its shareholders substantially all of its taxable income and net realized gains. The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The Fund has reviewed its tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on federal, state, and local income tax returns for open tax years (2018-2020) or expected to be taken in the Fund’s 2021 tax returns.

The Fund may be subject to foreign taxation related to foreign securities held by the Fund, income received, capital gains on the sale of securities, and certain foreign currency transactions

11 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Financial Statements

in the foreign jurisdictions in which it invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

2. FEES AND TRANSACTIONS WITH RELATED PARTIES The Fund has retained the Investment Manager pursuant to an investment management agreement. Under the terms of the investment management agreement, the Investment Manager receives a fee payable monthly for investment advisory services at an annual rate of 0.95% of the Fund’s Managed Assets. “Managed Assets” means the average weekly value of the Fund’s total assets minus the sum of the Fund’s liabilities, which liabilities exclude debt relating to leverage, short term debt, and the aggregate liquidation preference of any outstanding preferred stock.

Pursuant to the investment management agreement, the Fund reimburses the Investment Manager for providing at cost certain administrative services comprised of compliance and accounting services. For the six months ended June 30, 2021, the Fund’s reimbursements of such costs were $129,525, of which $75,225 and $54,300 was for compliance and accounting services, respectively. Certain officers and trustees of the Fund are officers and managers of the Investment Manager. As of June 30, 2021, Bexil Securities LLC (“Bexil Securities”), an affiliate of the Investment Manager, and the Investment Manager, collectively, owned approximately 10.1% of the Fund’s outstanding shares, pursuant to the Fund’s governing documents that permit ownership of more than 4.99% of the Fund’s outstanding shares only with the prior approval of the Board. Bexil Securities and the Investment Manager, collectively, acquired 45,871 shares of the Fund during the six months ended June 30, 2021 and 83,424 shares of the Fund during the year ended December 31, 2020, through the Fund’s Dividend Reinvestment Plan.

Each Fund trustee who is not an employee of the Investment Manager or its affiliates is compensated by the Fund. These trustees receive fees for service as a trustee from the Fund and the other funds of which they are a director and for which the Investment Manager or its affiliates serve as investment manager. In addition, trustee out-of-pocket expenses are allocated to such funds which the Investment Manager or its affiliates serve as investment manager based on the most practicable method deemed equitable at the time the expense is incurred, including, without limitation,

on the basis of relative assets under management. Expenses deemed to have been incurred solely by the Fund are normally charged to the Fund in the entirety.

3. DISTRIBUTIONS TO SHAREHOLDERS AND DISTRIBUTABLE EARNINGS The tax character of distributions paid by the Fund for the six months ended June 30, 2021 and year ended December 31, 2020 are comprised of the following:


Tax characteristics of distributions:	2021		2020

Ordinary income	$	27,026	$	335,397

Capital gains		6,262,699		6,451,817

Return of capital		–		5,701,511



Total distribution	$	6,289,725	$	12,488,725

The tax characteristics of the distributions paid for the six months ended June 30, 2021 are estimates based on information available at this time and may be subject to change. The classifications of these distributions for federal income tax purposes are expected to be determined after the Fund’s fiscal year ending December 31, 2021 and the exact amount is not estimable as of June 30, 2021.

As of December 31, 2020, the component of distributable earnings on a tax basis was as follows:


Unrealized appreciation			$ 48,900,901

The difference between book and tax unrealized appreciation is primarily related to partnership income.

4. VALUE MEASUREMENTS GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

• Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities including securities actively traded on a securities exchange.

• Level 2 – observable inputs other than quoted prices included in level 1 that are observable for the asset or liability which may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 12

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Financial Statements

• Level 3 – unobservable inputs for the asset or liability including the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for investments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.

The following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis:

Equity Securities (Common and Preferred Stock) – Most publicly traded equity securities are valued normally at the most recent official closing price, last sale price, evaluated quote, or closing

bid price. To the extent these securities are actively traded and valuation adjustments are not applied, they may be categorized in level 1 of the fair value hierarchy. Equities on inactive markets or valued by reference to similar instruments may be categorized in level 2.

Corporate Bonds and Notes – The fair value of corporate bonds and notes is normally estimated using various techniques which may consider, among other things, recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer. Although many corporate bonds and notes may be categorized in level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they may be categorized in level 3.

Restricted and/or Illiquid Securities – Restricted and/or illiquid securities for which quotations are not readily available or reliable may be valued with fair value pricing as described above. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted or illiquid securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer or both or similar inputs. Depending on the relative significance of valuation inputs, these instruments may be categorized in either level 2 or level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund’s assets. Refer to the Schedule of Portfolio Investments for detailed information on specific investments.


ASSETS	Level 1		Level 2		Level 3		Total
Investments, at value
Common stocks		$ 235,301,319		$ -		$ -		$ 235,301,319
Corporate bonds and notes		-		285,099		-		285,099
Reorganization interests		-		-		0		0
Master limited partnerships		965,200		-		-		965,200
Preferred stocks		1,227,320		-		-		1,227,320
Total Investments, at value		$ 237,493,839		$ 285,099		$ 0		$237,778,938

There were no securities transferred into or out of level 3 during the six months ended June 30, 2021.

13 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Financial Statements

The following is a reconciliation of level 3 assets including securities valued at zero:


	Reorganization interests
Balance at December 31, 2020		$ 0

Transfers into (out of) level 3		-

Change in unrealized depreciation		-

Balance at June 30, 2021		$ 0


Net change in unrealized appreciation attributable to assets still held as level 3 at June 30, 2021		$ -

Unrealized gains (losses) are included in the related amounts on investments in the Statement of Operations.

The Investment Manager, as the valuation designee subject to the Board’s oversight, considers various valuation techniques and inputs for valuing assets categorized within level 3 of the fair value hierarchy. These include, but are not limited to: the type of the security; the size of the asset; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; prices of and extent of public trading in similar securities of the issuer or of comparable issuers; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer or analysts; an analysis of the issuer’s financial statements; an evaluation of the forces that influence the issuer and the market in which the asset is purchased and sold; multiples of earnings, cash flow, enterprise value, and similar measures; and the discount rate for lack of marketability. Significant changes in any of those techniques or inputs in isolation may result in a significantly lower or higher fair value measurement. The pricing of all fair value assets is regularly reported to the Fund’s Board. As of June 30, 2021, these investments did not have a material impact on the Fund’s net assets and, therefore, disclosure of unobservable inputs used in formulating valuations is not presented.

5. INVESTMENT TRANSACTIONS Purchases and proceeds from sales or maturities of investment securities, excluding short term investments, were $37,755,589 and $59,558,663, respectively, for the six months ended June 30, 2021. As of June 30, 2021, for federal income tax purposes, the aggregate cost of securities was $156,423,379 and net unrealized appreciation was $81,355,559, comprised of gross unrealized appreciation of $83,119,078 and gross unrealized depreciation of $1,763,519. The aggregate cost of securities for tax purposes will depend upon the Fund’s investment experience during the entirety of its fiscal year and may be subject to changes based on tax regulations.

6. ILLIQUID AND RESTRICTED SECURITIES The Fund owns securities which have a limited trading market and/or certain restrictions on trading and, therefore, may be illiquid and/or restricted. Such securities have been valued using fair value pricing. Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available and reliable market quotation for the securities existed. These differences in valuation could be material. Illiquid and/or restricted securities owned as of June 30, 2021 were as follows:


	Acquisition Date	Cost			Value
Penson Technologies LLC	4/09/14	$	0			$0
Percent of net assets			0	%		0	%

7. CREDIT AGREEMENT The Fund entered into a revolving credit agreement and other related agreements (collectively, as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) with The Huntington National Bank (“HNB”), the Fund’s custodian, under which HNB may make loans to the Fund in such amounts as the Fund may from time to time request. The maximum loan amount under the Credit Agreement is the lesser of: (i) $55,000,000 or (ii) 30% of the Fund’s daily market value, which market value may be decreased by the exclusion of certain Fund assets or asset classes, as HNB may decide from time to time in its sole discretion. The Fund pledges its securities and other assets as collateral to secure its obligations under the Credit Agreement and retains the risks and rewards of the ownership of such securities and other assets pledged.

Borrowings under the Credit Agreement bear an interest rate per annum to be applied to the principal balance outstanding, from time to time, equal to the London Interbank Offered Rate (LIBOR) plus 1.20%. An unused fee is charged equal to 0.125% per annum of the daily excess of the maximum loan amount over the outstanding principal balance of the loan. The Fund was charged origination fees and expenses of $70,624 upon the annual renewal of the Credit Agreement and such cost is amortized ratably through June 15, 2022, the maturity date of the Credit Agreement.

There were no borrowings under the Credit Agreement as of June 30, 2021. The weighted average interest rate and average daily amount outstanding under the Credit Agreement for the six months ended June 30, 2021 were 1.77% and $2,119,696, respectively. The maximum amount outstanding during the six months ended June 30, 2021 was $18,974,500.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 14

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Financial Statements

8. SHARE TRANSACTIONS The Fund is authorized to issue an unlimited amount of $0.01 par value shares of beneficial interest. As of June 30, 2021, there were 12,620,075 shares outstanding. Share transactions for the following periods were:


Six Months Ended June 30, 2021

Shares issued in:	Shares	Amount
Reinvestment of distributions	55,118	$ 746,921

Year Ended December 31, 2020

Shares issued in:	Shares	Amount
Reinvestment of distributions	115,343	$ 1,138,790

9. SHARE REPURCHASE PROGRAM In accordance with Section 23(c) of the Company Act, the Fund may from time to time repurchase its shares in the open market at the discretion of and upon such terms as determined by the Board. The Fund did not repurchase any of its shares during the six months ended June 30, 2021 and the year ended December 31, 2020.

10. CONTINGENCIES To the maximum extent permitted by the Delaware Statutory Trust Act, as amended from time to time, and to the extent applicable, the Company Act, the Fund indemnifies its officers, trustees, and employees from certain liabilities that might arise from the performance of their duties for the Fund and, without requiring a preliminary determination of the ultimate entitlement to indemnification, may pay or reimburse reasonable expenses of the foregoing in advance of final disposition of a proceeding, in accordance with the terms of its governing documents and agreements. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which may provide general indemnifications and/or limitations of liability with respect to, among others, the Investment Manager in accordance with the Fund’s investment management agreement.

Shortly after announcement of the Fund’s shares delisting form the NYSE, a plaintiff’s law firm advertised for clients interested in challenging the NYSE delisting. This law firm has subsequently been in contact with the Fund. Although the Fund believes that the position expressed is entirely without merit, the Fund has and is likely to continue to incur costs in connection with this or any other objection to the NYSE delisting and similar matters.

The foregoing is not an exhaustive list of the Fund’s indemnification and other contingent obligations and is subject to the Fund’s governing documents, contracts, and other arrangements. The

Fund maintains directors and officers/errors and omissions liability insurance which may limit the Fund’s exposure and may enable it to recover a portion of any future amounts paid in accordance with, and subject to the limits of, the policy. Notwithstanding the foregoing, the potential future payments the Fund could be required to make with respect to its indemnification and other contingent obligations is unlimited.

11. RISKS AND UNCERTAINTIES

Market and Credit Risks – The Fund may invest in below investment grade securities (commonly referred to as “junk” bonds). Below investment grade securities are regarded as being predominantly speculative as to the issuer’s ability to make payments of principal and interest. The risks associated with acquiring the securities of such issuers generally are greater than is the case with higher rated securities. For example, during an economic downturn or a sustained period of rising interest rates, issuers of below investment grade securities may be more likely to experience financial stress, especially if such issuers are highly leveraged. During periods of economic downturn, such issuers may not have sufficient revenues to meet their interest payment obligations. The issuer’s ability to service its debt obligations also may be adversely affected by specific issuer developments, the issuer’s inability to meet specific projected business forecasts, or the unavailability of additional financing. Therefore, there can be no assurance that in the future there will not exist a higher default rate relative to the rates currently existing in the market for below investment grade securities. The risk of loss due to default by the issuer is significantly greater for the holders of below investment grade securities because such securities may be unsecured and may be subordinate to other creditors of the issuer. The relative illiquidity of some of these securities may adversely affect the ability of the Fund to dispose of such securities in a timely manner and at a fair price at times when it might be necessary or advantageous for the Fund to liquidate portfolio securities.

Foreign Securities Risk – Investments in the securities of foreign issuers involve special risks which include changes in foreign exchange rates and the possibility of future adverse political, tax, and economic developments which could adversely affect the value of such securities. Moreover, securities of foreign issuers and securities traded in foreign markets may be less liquid and their prices more volatile than those of U.S. issuers and markets. In addition, in certain foreign countries, there is the possibility of expropriation or confiscatory taxation, political, or social instability, or diplomatic developments that could affect U.S. investments in the securities of issuers domiciled in those countries. For example, the United Kingdom (UK) withdrew from the European Union

15 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Financial Statements

(EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and EU agreed to a provisional trade deal in December 2020, that was later ratified by the EU Parliament and entered into force on May 1, 2021, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes are difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Leverage Risk – The Fund from time to time may borrow under its Credit Agreement to increase the assets in its investment portfolio over its net assets, a practice called leverage. Leverage borrowing creates an opportunity for increased return but, at the same time, involves special risk considerations. Leverage increases the likelihood of greater volatility of the NAV and market price of the Fund’s shares. If the return that the Fund earns on the additional securities purchased fails to cover the interest and fees incurred on the monies borrowed, the NAV of the Fund (and the return of the Fund) would be lower than if borrowing had not been incurred. In addition, when the Fund borrows at a variable interest rate, there is a risk that fluctuations in the interest rate may adversely affect the return to the Fund’s shareholders. Interest payments and fees incurred in connection with such borrowings will reduce the amount of net income available for distribution to shareholders. There is no assurance that a borrowing strategy will be successful during any period in which it is employed. Borrowing on a secured basis results in certain additional risks. Should securities that are pledged as collateral to secure its obligations under the Credit Agreement decline in value, the Fund may be required to pledge additional assets in the form of cash or securities to the lender to avoid liquidation of the pledged assets. In the event of a steep drop in the value of pledged securities, it might not be possible to liquidate assets quickly enough and this could result in mandatory liquidation of the pledged assets in a declining market at relatively low prices. Furthermore, the Investment Manager’s ability to sell the pledged securities is limited by the terms of the Cred

it Agreement, which may reduce the Fund’s investment flexibility over the pledged securities. Because the fee paid to the Investment Manager is calculated on the basis of the average weekly value of the Fund’s total assets minus the sum of the Fund’s liabilities, which liabilities exclude debt relating to leverage, short term debt and the aggregate liquidation preference of any outstanding preferred stock, the dollar amount of the management fee paid by the Fund to the Investment Manager will be higher (and the Investment Manager will benefit to that extent) when leverage is utilized.

Cybersecurity Risk – With the increased use of technologies such as the Internet to conduct business, the Fund is susceptible to operational, information security, and related risks. Cyber incidents affecting the Fund or its service providers may cause disruptions and impact business operations, potentially resulting in financial losses, interference with the Fund’s ability to calculate its NAV, impediments to trading, the inability of shareholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional related costs.

Coronavirus (COVID-19) Pandemic – During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. The COVID-19 pandemic has led to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets in general. The COVID-19 pandemic may adversely impact the Fund’s ability to achieve its investment objectives. Because of the uncertainties on valuation, the global economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments. The extent of the impact on the performance of the Fund and its investments will depend on future developments, including, but not limited to, the duration and spread of the COVID-19 pandemic, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

12. OTHER INFORMATION The Fund may at times raise cash for investment by issuing shares through one or more offerings, including rights offerings. Proceeds from any such offerings will be invested in accordance with the investment objectives and policies of the Fund.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 16

FINANCIAL HIGHLIGHTS

(Unaudited)

Financial Statements


	Six Months Ended June 30, 2021			Year Ended December 31,
Per Share Operating Performance ⁽¹⁾	Six Months Ended June 30, 2021			2020			2019			2018			2017			2016
Net asset value, beginning of period		$16.16			$16.25			$12.82			$16.78			$14.18			$13.11
Income from investment operations:
Net investment income		-	*		0.04			0.16			0.20			0.16			0.25
Net realized and unrealized gain (loss) on investments		3.72			0.90			4.09			(2.93	)		3.05			1.84
Total income (loss) from investment operations		3.72			0.94			4.25			(2.73	)		3.21			2.09
Less distributions:
Net investment income		-	*		(0.03	)		(0.21	)		(0.11	)		(0.39	)		(0.23	)
Capital gains		(0.50	)		(0.52	)		-			(0.47	)		(0.09	)		-
Return of capital		-			(0.45	)		(0.59	)		(0.12	)		(0.12	)		(0.77	)
Total distributions		(0.50	)		(1.00	)		(0.80	)		(0.70	)		(0.60	)		(1.00	)
Fund share transactions
Effect of reinvestment of distributions		(0.02	)		(0.03	)		(0.02	)		(0.01	)		(0.01	)		(0.02	)
Decrease in net asset value from rights offering		-			-			-			(0.52	)		-			-
Total Fund share transactions		(0.02	)		(0.03	)		(0.02	)		(0.53	)		(0.01	)		(0.02	)
Net asset value, end of period		$19.36			$16.16			$16.25			$12.82			$16.78			$14.18
Market value, end of period		$14.81			$11.25			$13.46			$9.53			$13.43			$11.85
Total Return ⁽²⁾
Based on net asset value		24.27	%		10.26	%		35.50	%		(18.75	)%		24.09	%		18.13	%
Based on market price		36.55	%		(7.33	)%		50.99	%		(24.54	)%		18.84	%		17.55	%
Ratios/Supplemental Data ⁽³⁾
Net assets, end of period (000s omitted)		$244,290			$203,046			$202,347			$158,852			$179,401			$151,005
Ratios to average net assets of:
Total expenses ⁽⁴⁾⁽⁵⁾		1.86	%^†		2.26	%		1.91	%		1.63	%		1.77	%		1.62	%
Net expenses ⁽⁶⁾		1.86	%^†		2.26	%		1.91	%		1.63	%		1.77	%		1.62	%
Net investment income		0.02	%^†		0.29	%		1.07	%		1.28	%		1.04	%		1.85	%
Portfolio turnover rate		17	%		28	%		42	%		59	%		40	%		69	%
Leverage analysis, end of period:
Outstanding loan balance (000s omitted)		$ -			$ 9,401			$ 36,687			$ 26,728			$ 35,000			$ 27,780
Asset coverage per $1,000 ⁽⁷⁾		$ -			$ 22,597			$ 6,515			$ 6,943			$ 6,126			$ 6,436
Average commission rate paid		$ 0.0163			$ 0.0200			$ 0.0163			$ 0.0215			$ 0.0174			$ 0.0143

(1)	The per share amounts were calculated using the average number of shares outstanding during the period.

(2)

Total return on a market value basis is calculated assuming a purchase of shares on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s Dividend Reinvestment Plan. Generally, total return on a net asset value basis will be higher than total return on a market value basis in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total return on a net asset value basis will be lower than total return on a market value basis in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods. Total return calculated for a period of less than one year is not annualized. The calculation does not reflect brokerage commissions, if any.

(3)	Expenses and income ratios do not include expenses incurred by the Acquired Funds in which the Fund invests.

(4)	“Total expenses” are the expenses of the Fund as presented in the Statement of Operations before fee waivers and expense reductions.

(5)	The ratio of net expenses excluding interest expense and fees incurred from the use of leverage to average net assets was 1.78%^†for the six months ended June 30, 2021 and 2.00%, 1.47%, 1.34%, 1.44%, and 1.46%, for the years ended December 31, 2020, 2019, 2018, 2017, and 2016, respectively.

(6)	“Net expenses” are the expenses of the Fund presented in the Statement of Operations after expense reductions.

(7)

Represents the value of total assets less liabilities not represented by senior securities representing indebtedness divided by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness. For purposes of this calculation, the Credit Agreement is considered a senior security representing indebtedness.

*	Less than $0.005 per share.

†	Annualized.

See notes to financial statements.

17 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND


The additional information below and on the following pages is supplemental and not part of the financial statements of the Fund.
BOARD APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT		(Unaudited)
		Additional Information

The renewal of the investment management agreement (“IMA”) between Dividend and Income Fund (“Fund”) and the investment manager, Bexil Advisers LLC (“Investment Manager”), was unanimously approved by the Fund’s Board of Trustees (“Board”), including all of the Fund’s trustees who are not “interested persons” of the Fund (“Independent Trustees”) as defined under the Company Act at a meeting held on March 10, 2021 (“Meeting”). In considering the annual approval of the IMA, the Board considered a number of factors, including, among other things, information that had been provided at other meetings, as well as information furnished to the Board for the Meeting. Such information included, among other things: information comparing the management fees and total expense ratio of the Fund with a peer group of broadly comparable funds as provided by Broadridge (“Broadridge”), an independent provider of investment company data, which uses information sourced from both Lipper and Morningstar as well as from company reports, financial reporting services, periodicals and other sources; information regarding the Fund’s investment performance on an absolute basis and in comparison to, among other things, a relevant peer group of funds (“Peer Group”) and a benchmark index as provided by Broadridge; the economic outlook and the general investment outlook in relevant investment markets; the Investment Manager’s results and financial condition and the overall organization of the Investment Manager; the allocation of brokerage and the benefits received by the Investment Manager as a result of brokerage allocation; the Investment Manager’s trading practices, including soft dollars; the Investment Manager’s management of relationships with the Fund’s custodian, transfer agent, pricing agents, brokers, and other service providers; the resources devoted to the Investment Manager’s compliance efforts undertaken on behalf of the Fund and the record of compliance with the compliance programs of the Fund, the Investment Manager, and its affiliates; the quality, nature, cost, and character of the administrative and other non-investment management services provided by the Investment Manager and its affiliates; the terms of the IMA; the Investment Manager’s gifts and entertainment log; the reasonableness and appropriateness of the fee paid by the Fund for the services described in the IMA and whether it was the product of arm’s length bargaining; the nature, extent, and quality of the services provided by the Investment Manager; the fiduciary duty assumed by the Investment Manager in connection with the services rendered to the Fund and the business reputation of the Investment Manager and its financial resources; the character and amount of other incidental or “fall-out” benefits received by the Investment Manager and its affiliates from its association with the Fund, including soft dollar benefits; the extent to which economies of scale would be realized as the Fund grows; whether fee levels reflect these economies of scale for the benefit of Fund investors; and comparisons of the services rendered and the amounts paid under the IMA with those under other advisory con

tracts, such as contracts of the same type between other investment advisers and other registered investment companies.

The Board also reviewed in detail and at length the Investment Manager’s responses to the Board’s request for certain information related to, among other things: the Investment Manager’s general business, personnel, and operations; fees, profitability, and financial information; trading information; Fund performance; compliance and legal; and other related matters. The Board expressed its satisfaction with the Investment Manager’s responses to its request for such information.

In considering the nature, extent, and quality of the management services provided by the Investment Manager, the Board considered the Investment Manager’s management capabilities with respect to the types of investments held by the Fund, including information relating to the education, experience, and number of investment professionals and other personnel who provide services under the IMA. The Board also took into account the time and attention devoted by management to the Fund. In this regard, the Board noted that the Investment Manager is responsible for, among other things, overseeing the selection of investments for the Fund, making investment decisions for the Fund, monitoring the investment operations and composition of the Fund, and, in connection therewith, monitoring compliance with the Fund’s investment objectives, policies, and restrictions, as well as the Fund’s compliance with applicable law; monitoring brokerage selection, commissions and other trading costs, quality of execution, and other brokerage matters; and implementing the Board’s directives as they relate to the Fund. Further, the Board considered that the Investment Manager’s responsibilities include daily monitoring of investment, operational, enterprise, legal, regulatory, and compliance risks as they relate to the Fund. The Board evaluated the level of skill required to manage the Fund and concluded that the resources available at the Investment Manager are appropriate to effectively fulfill its duties on behalf of the Fund. The Board noted that the Investment Manager has managed the Fund for several years. The Board indicated its belief that a long term relationship with capable, conscientious personnel is in the best interests of the Fund.

The Board received information concerning the investment philosophy and investment process applied by the Investment Manager in managing the Fund. In this regard, Mr. Thomas Winmill, as the portfolio manager of the Fund and Chairman of the Investment Policy Committee of the Investment Manager, stated that the investment philosophy and/or investment process applied in managing the Fund had not changed since the Board’s prior annual review of the IMA.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 18

BOARD APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT

(Unaudited)

Additional Information

The Board also considered the Investment Manager’s in-house research capabilities as well as other resources available to the Investment Manager’s personnel, including research services that may be available to the Investment Manager as a result of securities transactions effected for the Fund. The Board concluded that the Investment Manager’s investment process, research capabilities, and philosophy were well suited to the Fund, given the Fund’s investment objectives and policies.

In its review of comparative information with respect to the Fund’s investment performance, the Board received information from Broadridge comparing the Fund’s investment performance on an absolute basis and to that of its Peer Group and a benchmark index which were provided by Broadridge. Broadridge also provided supplemental Morningstar information which was discussed. The Board engaged in a lengthy discussion regarding the appropriateness of the Peer Group for the Fund.

After reviewing performance information with respect to the Fund, the Board noted that the Fund’s total return (i) outperformed its benchmark index in the one, two, four, and five year periods, but underperformed in the three and ten year periods, ended December 31, 2020, (ii) outperformed the median total return of its Peer Group in the one, two, four, five, and ten year periods, but underperformed in the three year period, ended December 31, 2020, and (iii) outperformed the average total return of its Peer Group in the one, two, four, and five year periods, but underperformed in the three and ten year periods, ended December 31, 2020. The Board considered that the Investment Manager became the Fund’s investment manager in February 2011 and that the Fund’s performance prior to that time was attributable to its former investment manager. The Board then concluded that the Fund’s performance was within a range that it deemed competitive.

The Board noted that performance is only one of the factors that it deems relevant to its consideration of the IMA and that, after considering all relevant factors, it can reach a decision to renew the IMA notwithstanding the Fund’s underperformance over certain periods.

With respect to its review of the fees payable under the IMA, the Board considered information from Broadridge comparing the Fund’s management fee and expense ratio to those of its Peer Group. The Board observed that the Fund’s management fee based on common and leveraged assets is higher than the median in its Peer Group and its total expense ratio based on common and leveraged assets is also higher than the median in its Peer Group, and the Board discussed the contributing factors thereof. The Board concluded that although DNIF’s management fee and total

expense ratio are within a higher range relative to its Peer Group, the management fee and total expense ratio are reasonable in light of the quality of services received and the level of assets managed. The Board also evaluated any apparent or anticipated economies of scale in relation to the services the Investment Manager provides to the Fund. The Board considered that the Fund is a closed end fund that does not continuously offer shares and that, without daily inflows and outflows of capital, there are limited opportunities for significant economies of scale to be realized by the Investment Manager in managing the Fund’s assets.

The information provided assisted the Board in concluding that the management fee paid by the Fund is within the range of those paid by comparable funds within the fund industry and is fair and reasonable in light of the quality of services received and the level of assets managed. Further, the Board concluded that the Investment Manager’s management fee bears a reasonable relationship to the services rendered and has been the product of arm’s length bargaining.

The Board also considered information regarding the character and amount of other incidental benefits received by the Investment Manager and its affiliates from its association with the Fund. The Board concluded that potential “fall-out” benefits that the Investment Manager and its affiliates may receive, such as increased ability to obtain research services, appear to be fair and reasonable and may, in some cases, benefit the Fund.

The Board also considered the profitability of the Investment Manager from its association with the Fund, including historical profitability information. In this regard, the Board considered the costs of the services provided, and the profits realized, if any, by the Investment Manager in connection with the operation of the Fund and was satisfied that the profitability was not excessive under the circumstances. In addition, the Board considered the financial stability of the Investment Manager during its deliberations.

The Board did not consider any single factor as controlling in determining whether or not to renew the IMA. In assessing the information provided by the Investment Manager and its affiliates, the Board also noted that it was taking into consideration the benefits to shareholders of investing in a Fund that is part of a fund complex which provides a variety of shareholder services.

Based on its consideration of the foregoing factors and conclusions, and such other factors and conclusions as it deemed relevant, the Board, including all of the Independent Trustees, concluded that the approval of the IMA, including the fee structure, is in the best interests of the Fund.

19 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

POLICIES AND UPDATES

(Unaudited)

Additional Information

Investment Objectives and Policies

The Fund’s primary investment objective is to seek high current income. Capital appreciation is a secondary objective. The investment objectives of the Fund are fundamental policies that may not be changed without a vote of a majority of the Fund’s outstanding voting securities. The Fund is also subject to certain investment policies and restrictions that are fundamental and cannot be changed without such vote. A majority of the outstanding voting securities of the Fund is defined under the Company Act as the lesser of: (i) 67% or more of the Fund’s shares present at a meeting if more than 50% of the outstanding shares of the Fund are present or represented by proxy; or (ii) more than 50% of the outstanding shares of the Fund. All other investment strategies, policies, and restrictions described are not fundamental and may be changed by the Board without shareholder approval except as required by law.

Limitations on Ownership

Article II of the Fund’s Amended and Restated Agreement and Declaration of Trust (the “Declaration”) currently limits the ability of persons to own more than 4.99% of the Fund’s outstanding shares without the Trustees’ prior approval (“4.99% Share Limitations”). The 4.99% Share Limitations may assist the Board to better defend against takeover activities, such as to defend against arbitrageurs attempting to make a short term profit in Fund shares while trading at a discount to NAV potentially at the expense of long term investors. The 4.99% Share Limitations also are intended to have the effect of impeding or discouraging a merger, tender offer, or proxy contest.

The Declaration generally restricts any person from attempting to purchase or otherwise acquire (an “Acquisition”), without the Trustees’ prior approval, any direct or indirect interest in the Fund’s shares (or, if issued in the future, options, warrants, or other rights to acquire Fund shares or securities convertible or exchangeable into them), if the Acquisition would either (1) cause such person to become either an owner (within the meaning of Section 382 of the IRC) or a beneficial owner (within the meaning of Section 13 of the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder and exemptions granted therefrom, both as amended from time to time (the “Exchange Act”)) of greater than 4.99% of the Shares, (a “Five Percent Shareholder”) or (2) increase the percentage of Shares owned by a Five Percent Shareholder. Rule 13d-3 under the Exchange Act provides that “[f]or the purposes of sections 13(d) and 13(g) of the [Exchange] Act, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (1) Voting power which includes the power to vote, or to direct the voting of, such security; and/or, (2) Investment power which includes the power to dispose, or to direct the disposition of, such security.”

The Declaration provides that any Acquisition attempted to be made in violation of the 4.99% Share Limitations will be null and void ab initio to the fullest extent permitted by law and contains detailed terms that seek to achieve that result. The Declaration also provides that any person who knowingly violates the 4.99% Share Limitations,

or any persons in the same control group with such a person, shall be liable to the Fund for, and shall indemnify and hold it harmless against, any and all damages suffered as a result of the violation, including damages resulting from a reduction in or elimination of the Fund’s ability to use its current or potential capital loss carryovers under Section 1212 of the IRC from previous taxable years and unrealized capital losses in its portfolio and attorneys’ and auditors’ fees incurred in connection with such violation.

Additional Offerings

Previously, the Fund has issued additional shares of beneficial interest through rights offerings. In the future, subject to market conditions, the Fund may raise additional equity capital from time to time in varying amounts and utilizing various offering methods. While raising additional equity capital by selling new shares may allow the Fund to pursue additional investment opportunities without the need to sell existing portfolio investments, it also entails risks — including NAV and voting dilution, and that the issuance of additional shares of beneficial interest may reduce the premium or increase the discount at which the Fund’s shares trade to NAV in the secondary market.

Future offerings, if any, will be described in a registration statement which contains detailed information regarding the offering and should be reviewed carefully before investing. This report is not an offer to sell Fund shares and is not a solicitation of an offer to buy Fund shares in any jurisdiction where the offers or sales are not permitted.

Proxy Voting

The Fund’s Proxy Voting Guidelines, which describe the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities, as well as its proxy voting record for the most recent 12 months ended June 30, are available without charge, upon request, by calling the Fund toll free at 1-855-411-6432, on the SEC’s website at www.sec.gov, and on the Fund’s website at www.Divi-dendandIncomeFund.com.

Quarterly Schedule of Portfolio Holdings

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year of Part F of Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov and a link thereto can be found on the Fund’s website at www.DividendandIncomeFund.com.

Risks Associated with the Transfer of the Trading Market for Fund’s Shares

Effective October 9, 2020, the Fund’s shares delisted from the NYSE and began trading on the OTC Market. Potential principal risk factors associated with investment in the Fund arising from such action may include, but are not limited to: reduced trading volume and liquidity, greater trading spreads, increased market discount to NAV of the Fund’s shares, and the elimination of the governance, shareholder meeting and reporting requirements of the NYSE.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 20

POLICIES AND UPDATES

(Unaudited)

Additional Information

While the Fund believes that the potential benefits of transferring the trading market of the Fund’s shares, such as reduced direct and indirect expenses and increased ability for the Fund’s Board and management to focus on the Fund’s investment objectives, outweighed the potential risks, there is no guarantee that such benefits will be realized. Shortly after announcement of the NYSE delisting, a plaintiff’s law firm advertised for clients interested in challenging the NYSE delisting. This law firm has subsequently been in contact with the Fund. Although the Fund believes that the position expressed is entirely without merit, the Fund has and is likely to continue to incur costs in connection with this or any other objection to the NYSE delisting, and similar matters, and any such challenges could potentially frustrate the potential benefits of the NYSE delisting and similar matters. The Fund continues to maintain its investment company registration and will update its shareholders with financial and other information as required by applicable law.

Governing Documents

Certain provisions in the Fund’s governing documents could have the effect of, among other things, depriving the owners of shares in the Fund of opportunities to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Fund in a tender offer or similar transaction or bringing litigation against the Fund and/or any trustee, officer, employee or affiliate thereof. The overall effect of these provisions is to, among other things, render more difficult the accomplishment of a merger or the assumption of control by a principal shareholder. For more information, please refer to the governing documents of the Fund, which are on file or are expected to be filed with the SEC and available on the Fund’s website www.DividendandIncomeFund.com.

21 Semi-Annual Report 2021

DIVIDEND AND INCOME FUND

DISTRIBUTIONS

(Unaudited)

Additional Information

2021 Quarterly Distribution Dates


Declaration	Record	Payment

March 1	March 15	March 25

June 1	June 14	June 24

September 1	September 16	September 28

December 1	December 15	December 30


HISTORICAL DISTRIBUTION SUMMARY*
PERIOD	Investment Income		Return of Capital		Capital Gains		Total
Six Months ended June 30, 2021***		$ 0.00†		$ 0.00	$	0.50	$	0.50
2020		$ 0.03		$ 0.45	$	0.52	$	1.00
2019		$ 0.21		$ 0.59	$	-	$	0.80
2018		$ 0.11		$ 0.12	$	0.47	$	0.70
2017		$ 0.39		$ 0.12	$	0.09	$	0.60
2016		$ 0.23		$ 0.77	$	-	$	1.00
2015		$ 0.26		$ 1.37	$	-	$	1.63
2014**		$ 1.63		$ -	$	-	$	1.63
2013**		$ 1.16		$ 0.47	$	-	$	1.63
2012		$ 0.56		$ 1.07	$	-	$	1.63
2011		$ 1.00		$ 0.76	$	-	$	1.76
2010		$ 1.40		$ 0.24	$	-	$	1.64
2009		$ 1.56		$ 0.08	$	-	$	1.64
2008		$ 2.36		$ 1.08	$	-	$	3.44
2007		$ 3.36		$ 1.20	$	-	$	3.56
2006		$ 3.72		$ -	$	-	$	3.72
2005		$ 2.12		$ 1.88	$	-	$	4.00
2004		$ 2.16		$ 1.84	$	-	$	4.00
2003		$ 2.44		$ 1.56	$	-	$	4.00
2002		$ 2.64		$ 1.84	$	-	$	4.48
2001		$ 2.60		$ 2.36	$	-	$	4.96
2000		$ 3.20		$ 1.76	$	-	$	4.96
1999		$ 3.44		$ 1.40	$	0.12	$	4.96
From June 29, 1998 to November 30, 1998		$ 1.64		$ -	$	-	$	1.64

The Fund implemented a 1-for-4 reverse stock split with an ex-date of December 10, 2012. Prior period distribution amounts have been restated to reflect the impact of the reverse stock split.

Includes net capital gains recognized in the year and distributable as ordinary income in accordance with tax regulations.

***

The classifications of these distributions for federal income tax purposes will be determined after the Fund’s fiscal year ending December 31, 2021. This is only an esti- mate based on information available at this time and is subject to change. Actual amounts may be re-characterized among net investment income, capital gains, and return of capital for tax purposes after the 2021 fiscal year end, although the exact amount is not estimable at June 30, 2021.

†

Less than $0.005 per share.

Distribution Policy

The Fund’s quarterly distributions reflect the Fund’s current distribution policy to provide shareholders with a relatively stable cash flow per share. There is no guarantee that the Fund’s current distribution policy will reduce or eliminate the Fund’s market price discount to its NAV per share, if any, and the Fund’s trustees have no fiduciary duty to take action, or to consider taking any action, to narrow any such discount. The distribution policy and the distribution amount may be amended, suspended, or terminated at any time without prior notice.

Under U.S. tax rules applicable to the Fund, the amount and character of distributable income for each tax year can be finally determined only as of the end of the Fund’s tax year. However, under Section 19 of the Company Act, and related rules, the Fund may be required to indicate to shareholders the source of certain distributions to shareholders. The information provided in those notices does not represent information for tax reporting purposes. Earnings and profits on a tax basis may differ.

DIVIDEND AND INCOME FUND

Semi-Annual Report 2021 22

DISTRIBUTIONS

(Unaudited)

Additional Information

Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s distribution policy. The Fund is subject to risks that could have an adverse impact on its ability to maintain level distributions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, equity securities risk, corporate bonds risk, credit risk, interest rate risk, leverage and borrowing risk, and other risks discussed in the Fund’s filings with the Securities and Exchange Commission.

Distributions may be paid in part or in full from net investment income, realized capital gains, and by returning capital, or a combination thereof. To the extent that the Fund has estimated that it has distributed more than its income and net realized capital gains, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” Additionally, a return of capital is not taxable; rather it reduces a shareholder’s tax basis in his or her shares of the Fund, thereby increasing the shareholder’s potential gain or reducing its potential loss on the subsequent sale of those shares.

The amounts and sources of distributions reported in the Fund’s 19(a) notices are only estimates based on book earnings, are likely to change over time and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the entirety of its fiscal year and may be subject to changes based on tax regulations.

The Fund intends to send you a Form 1099-DIV for the calendar year that will instruct you how to report these distributions for federal income tax purposes.

Terms and Conditions of the 2021 Amended Dividend Reinvestment Plan

SEC Form N-CSRS filed by Dividend and Income Fund